ERP Failures and Lawsuits: It’s Not Just For the Tier I ERP Vendors
Just as we released some initial data from our 2011 ERP Report showing that ERP implementation costs declined again in 2010, ERP lawsuits continue to proliferate through the industry. For example, Marin County filed a lawsuit against their system integrator in 2010 and Lumber Liquidators blamed a botched SAP implementation for their financial woes late last year.
Over the years, it seems as if SAP and, to a lesser degree, Oracle take a majority of the hits in the media for high profile failures and lawsuits. Waste Management, Hershey’s, the Shane Company, Overstock – all of these examples are well-known companies that blamed their new ERP systems for their difficulties, and the solutions are all provided by Tier I ERP vendors such as SAP and Oracle in these examples. However, as we published in a blog last year, Tier I ERP vendors aren’t the only ones with failures and lawsuits on their hands. For example, just a few weeks ago, a jury awarded pet food maker Sunshine Mills a $61M award against Ross Systems, a division of CDC Software, which was its Tier II ERP vendor.
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